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Speaker 1: Sustainable jet fuel made with wood residue could make up

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Speaker 1: twenty five percent of our domestic fuel needs, according to

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Speaker 1: a new study by Air New Zealand and LANZA. Jet

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Speaker 1: wood waste like slash and low value wood products can

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Speaker 1: be turned into the fuel which could soon be manufactured

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Speaker 1: right here in New Zealand, potentially creating hundreds of regional jobs.

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Speaker 1: Kerrie Hannafin is in New Zealand's chief sustainability and corporate

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Speaker 1: affairs officers. She's with us Live this morning. Carry good morning, Oh,

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Speaker 1: good morning, nice to talk to you. Nice to have

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Speaker 1: you on the program. So are we talking forestry slash?

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Speaker 1: Stuff that you would go and get from the forest,

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Speaker 1: take it process and then stick it in the plane.

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Speaker 2: Essentially, it's the waste from the forestry industry, that's right.

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Speaker 2: And through a process the woody biomass is turned into

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Speaker 2: a guess and then using bacteria into ethanol, and the

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Speaker 2: from ethanol it's processed into kerosene which we can fly with.

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Speaker 1: That's right, okay, And the goal is for the industry

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Speaker 1: at least to create one hundred million leasures here. Why

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Speaker 1: is no one doing it already?

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Speaker 2: It's happening all over the world. So there's a huge

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Speaker 2: movement to this clean fuel and it's happening sort of

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Speaker 2: in countries, so countries are doing it on themselves. So

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Speaker 2: most of us now all of us actually rely on

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Speaker 2: liquid fuel coming out of just a few nation states

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Speaker 2: fossil jet fuel. And because of the transition to sort

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Speaker 2: of cleaner fuels that we all need to go to

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Speaker 2: towards twenty fifty, countries are working up that they can

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Speaker 2: make it themselves using non fossil material So it's a

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Speaker 2: global phenomenon inhabiting at great pace.

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Speaker 1: Actually, right, but still I'm only supplying about one percent

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Speaker 1: of global fossil of global aviation fuel demand, is that right?

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Speaker 2: That's right. So at the moment is about thirty manufacturers

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Speaker 2: in the world, and by twenty fifty we need about

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Speaker 2: five thousand, five to seven thousand, so huge, huge list

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Speaker 2: needed in the next of couple of decades.

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Speaker 1: What's stopping the industry in New Zealand, I guess is

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Speaker 1: my question.

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Speaker 2: Well, it's still pretty you know, new technology, so I

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Speaker 2: guess we're all learning. It's the number one. Number two.

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Speaker 2: There's only a few people doing at the moment because

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Speaker 2: it's so technical, so there's a few big manufacturers and

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Speaker 2: Lunds of jet A one of them, the ones that

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Speaker 2: we didn't study with. And then it's quite slow. It

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Speaker 2: takes a little bit of time to find the right feedstock.

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Speaker 2: So we're looking at wood waste here to make the plants,

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Speaker 2: to get the investment to make the plant, and then

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Speaker 2: to start making it. So it's just time. But you know,

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Speaker 2: every week there seems to be a new announcement somewhere

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Speaker 2: in the world. It was Argentina last week. Bgre looking

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Speaker 2: at it to start looking at whether that could be manufactured.

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Speaker 2: So it's going to move pretty quickly, but it's just

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Speaker 2: taken a little while to take off.

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Speaker 1: What's the cost difference for you guys at the moment

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Speaker 1: jet fuel versus you know, the sustainable fuel.

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Speaker 2: Yeah, anywhere between two and five times the price of

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Speaker 2: fossil jet fuel. So it is expensive. It's most affordable

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Speaker 2: when we buy it out of America because it's highly subsidized.

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Speaker 2: The American Biden put in a the Inflation Reduction Act

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Speaker 2: and there's trillions of the US dollars going into renewable

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Speaker 2: energy and that's brought the price down of it. So

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Speaker 2: anywhere between two de vive and we obviously try to

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Speaker 2: get it at the two premium, you know, and try

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Speaker 2: to get it out of the States because it's just

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Speaker 2: much more affordable.

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Speaker 1: Does that mean, I mean, if it could make up

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Speaker 1: twenty five percent of our domestic fuel jet fuel needs,

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Speaker 1: does that mean high prices.

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Speaker 2: The moment we're absorbing it is a cost of doing business.

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Speaker 2: And you know what, this is all sort of part

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Speaker 2: of the market kind of move. The more supply we

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Speaker 2: have and the more supply we can support, the sort

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Speaker 2: of more strong demand signals to get their supply going,

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Speaker 2: the price will come down. It's just sort of supply

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Speaker 2: and demand economics. And because so many countries now have

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Speaker 2: regulated the use of this alternative fuel, the fossil majors

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Speaker 2: are having to start manufacturing it and providing it as

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Speaker 2: part of their engagement and providing fuel to countries. So

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Speaker 2: it's all going in the right way. All airlines by

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Speaker 2: twenty fifty you have to fly with nothing but seth.

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Speaker 2: It's only a couple of decades, so it we'll move

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Speaker 2: in the right direction. We just got to get the

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Speaker 2: market going, which is what he's really interested to support.

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Speaker 1: What happens if you don't by twenty fifty We've got

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Speaker 1: about ten seconds we need aviation.

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Speaker 2: Aviation will be about a quarter twenty five percent of

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Speaker 2: the world's carbon emissions if we don't sort it out right.

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Speaker 1: But if you don't, you can keep flying, right, I mean,

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Speaker 1: it's not like it's going to take you on. Yeah, okay, y,

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Speaker 1: thank you. Kerry Henderson and he's in on the Sea

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Speaker 1: sustateability in corporate a fairs office. For more from Early

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